Legal Definitions - agreed price

The term agreed price refers to the specific amount of money that two or more parties have mutually consented to as the payment for goods, services, or property. It is the fixed monetary value that both the buyer and seller, or the service provider and client, have accepted and committed to within an agreement or contract.

• Example 1: Purchasing a Vehicle
  A customer visits a car dealership and, after test driving a sedan, negotiates with the salesperson. After some discussion, they both settle on a final purchase price of $28,500 for the car, including all accessories and fees. This $28,500 is the agreed price.

  Explanation: Both the customer and the dealership have explicitly accepted $28,500 as the amount to be exchanged for the vehicle, making it the mutually determined cost of the transaction.

• Example 2: Home Renovation Project
  A homeowner wants to remodel their bathroom and receives quotes from several contractors. After reviewing proposals and discussing the scope of work, they choose a contractor and sign a contract stating that the total cost for the renovation will be $12,000. This $12,000 is the agreed price.

  Explanation: The homeowner and the contractor have formally committed to $12,000 as the complete payment for the specified renovation services, establishing it as the accepted cost for the project.

• Example 3: Business Consulting Services
  A startup company seeks advice on its marketing strategy and engages a consulting firm. After outlining the project deliverables and timelines, both parties sign a service agreement specifying a flat fee of $7,500 for the firm's three-month consulting engagement. This $7,500 is the agreed price.

  Explanation: The startup and the consulting firm have both consented to $7,500 as the compensation for the consulting services, making it the established and accepted payment for the duration of the agreement.